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The Case of Hong Kong THE PRINCIPLES AND FLEXIBILITY IN CHINA'S EXTERNAL RELATIONS: THE CASE OF HONG KONG DONG MING (MSc) September 1 9 9 1 Thesis submitted to the University of London in partial fulfilment of the requirement for the Degree of Doctor of Philosophy in International Relations London School of Economics and Political Science University of London 1 i UMI Number: U615535 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615535 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 ( £ «S £- S F 683$ xc2 IIU02S Abstract This thesis examines the evolution of China's Hong Kong policy in the period 1949-84, and how China came to reach its agreement with the British government over Hong Kong's future. It attempts, through the study of China's Hong Kong policy, to explore one of the most important aspects of China's external policy — the combination of principles and flexibility, and how Chinese leaders rationalized a flexible external policy in accordance with their principles. In general terms, the thesis analyses how the ideological convictions of Chinese leaders have shaped their view of the world, moulded their strategy, and provided the rationale for both the ends and means of their policies. It will also outline the principles applied operationally in China's external relations. There then follows a discussion of the particular tactics and processes of decision-making as relevant to the Hong Kong issue. China's legal interpretation of unequal treaties is contrasted with the its actual position, from both a theoretical and practical point of view. With specific regard to Hong Kong, there is a detailed analysis of the evolution of China's Hong Kong policy. This begins by examining the establishment of China's Hong Kong policy in the early years of the People's Republic. The factors contributing to China's tolerance of a British colony on its doorstep are considered. How China came to reach a tacit understanding with Britain for maintaining the status quo of Hong Kong is explored. The examination then turns to the impact of the Cultural Revolution on China's Hong Kong policy. Particular attention is paid to the PRC's policies towards overseas Chinese and to possible lessons to be learnt from Beijing's handling of its Hong Kong policy in a delicate situation. The changes in China's domestic politics after the Cultural Revolution are related to the country's external policies, especially regarding Hong Kong. The connection between China's Hong Kong policy and its Taiwan policy is also discussed. The subsequent consideration of the negotiations between the PRC and the United Kingdom seeks to explain how Beijing maintained its stand on the principal issues such as sovereignty while, at the same time, being flexible on specific matters. Finally, the concept of 'one country, two systems' is examined, with particular reference to China's declared principles of territorial integrity, sovereignty and unification, on the one hand, and its pragmatic goals of economic development and modernization on the other. 2 CONTENTS Title........ 1 Abstract ................................................. 2 Contents....................................................... 3 Acknowledgments................................................5 Abbreviation used..............................................6 Note on transliteration used................................. 7 Introduction................................................... 8 Chapter One Principles in the Conduct of China's External Relations 1-1 Ideology in China's external relations................ 16 1-2 Principles in China's external relations.............. 3 9 1-3 Tactics and flexibility................................. 40 1-4 Flexibility and China's decision-making system........ 45 Chapter Two The PRC's Treatment of Territorial and Border Claims and the Question of' Hong Kong 2-1 State succession and the application of treaties in general international law............................... 49 2-2 China's interpretation of the international law of state succession and the law of treaties........... 57 2-3 China's practice in handling the preexisting treaties.65 2-4 The position of Hong Kong.......................... 84 Conclusion................................................93 Chapter Three The Formation of the PRC's Hong Kong Policy 3-1 The status of Hong Kong before 1949..................... 96 3-2 The Communist victory and the position of Hong Kong..105 3-3 The impact of the Korean War ............................112 3-4 The impact of Britain's China policy................... 117 3-5 The affair of CNAC and CATS.............................12 6 3-6 The position of the New China News Agency............. 129 3-7 The impact of the "Bandung Spirit"..................... 134 3-8 The establishment of China's Hong Kong policy.......... 139 Conclusion............................................... 145 3 Chapter Four The Cultural Revolution and China's Hong Kong Policy 4-1 The Cultural Revolution and China's Overseas Chinese policy................................................... 149 4-2 Demonstrations and riots in Macao..................... 161 4-3 Hong Kong............................................... 172 Conclusion............................................... 189 Chapter Five China's Programme of Modernization and its Impact on Hong Kong 5-1 Ideological debate and the emergence of a more pragmatic leadership and policy........................ 194 5-2 The 'open door' policy................................. 200 5-3 Adjustment of China's foreign policy in the 1980s....210 5-4 Hong Kong and China's modernization...................222 Conclusion............................................... 228 Chapter Six The Unexpected Challenge of Having to Settle the Future of Hong Kona 6-1 The raising of the issue of 1997...................... 233 6-2 The impact of the 1981 British Nationalities Act and the Falklands War of 1982.............................. 240 6-3 The Change in Beijing's Taiwan policy................ 251 6-4 China's position on entering the negotiations....... 2 60 6-5 The negotiations................. 270 Conclusion............................................... 282 Chapter Seven One Country, Two Systems 7-1 The development of the concept and the theoretical dilemma.................................................. 287 7-2 A relevant case study.................................. 293 7-3 The uncertainty of the socialist system in the mainland.............................................. 303 7-4 The prospects of Capitalism in Hong Kong.............. 310 7-5 The mainland vis-a-vis Hong Kong...................... 322 7-6 The position of Taiwan................................. 336 Conclusion............................................... 342 Chapter Eight Conclusion.......................... 347 Bibliography................................................. 363 4 ACKNOWLEDGEMENTS I wish to acknowledge my gratitude to my supervisor, Mr Michael B. Yahuda for his experienced supervision. I would like also to thank other lecturers in the Department of International Relations at the London School of Economics and Political Science for their teaching and encouragement. Special thanks to Dr Tony Kahane for his assistance in checking the written English of the whole thesis. I am indebted to many individuals in both their official and unofficial capacities for their time and assistance in helping me gather the information required to write this thesis. The study has been supported, in part, by the Overseas Research Award Scholarship, the LSE Montague Burton Studentship of International Relations, the Hardship Fund of the LSE, the Sino-British Educational Trust Award and the Central Research Fund of the University of London. I am grateful to all of these. Dong Ming London, $ept. 1991 5 ABBREVIATIONS CATC Central Air Transport Corporation CNAC China National Aviation Corporation CO Colonial Office COCOM Coordinating Committee of the Consultative Group CPC Communist Party of China CPG Central People's Government CPPCC Chinese People's Political Consultative Conference FBIS Foreign Broadcast Information Service FEER Far Eastern Economic Review FRUS Foreign Relations of the United States FO Foreign Office (British) HMG Her (His) Majesty's Government JLG Joint Liaison Group NCNA New China News Agency NPC National People's Congress PLA People's Liberation Army PRC People's Republic of China ROC Republic of China SAR Special Administrative Region SCMP South China Morning Post SEATO South East Asia Treaty Organization SEZ Special Economic Zone TKP Ta Kung Pao 6 A NOTE ON TRANSLITERATION Chinese names, terms, phrases and titles used in this thesis are given in Pinyin, the official system of transliteration in the People's Republic of China. The exceptions are those applying to Hong Kong and Taiwan where Wade-Giles has been adopted. 7 INTRODUCTION From its establishment in 1841 as a British colony, Hong Kong has survived successive changes of regimes on the mainland. The
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